Providing Choice for Social Security Retirees Act

I 117TH CONGRESS 1ST SESSION H. R. 3889 To amend title II of the Social Security Act to provide an option to claim a delayed retirement credit in a partial lump sum, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 15, 2021 Mr. SMITH of Nebraska introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend title II of the Social Security Act to provide an option to claim a delayed retirement credit in a par- tial lump sum, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Providing Choice for 4 Social Security Retirees Act’’. 5 SEC. 2. OPTION TO CLAIM DELAYED RETIREMENT CREDIT 6 IN PARTIAL LUMP SUM. 7 Section 202(w) of the Social Security Act (42 U.S.C. 8 402(w)) is amended by adding at the end the following: 9 VerDate Sep 11 2014 02:42 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3889.IH H3889 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3889 IH ‘‘(7)(A) In any case in which an individual becomes 1 entitled to an old-age insurance benefit in a calendar year 2 after 2021, and such benefit is subject to a monthly in- 3 crease under paragraph (1), such individual may elect to 4 receive, in lieu of the monthly increase under paragraph 5 (1)— 6 ‘‘(i) an alternate monthly increase as deter- 7 mined under subparagraph (E); and 8 ‘‘(ii) in addition to such monthly benefit as in- 9 creased under clause (i), a one-time lump sum pay- 10 ment, payable at the time of such individual’s enti- 11 tlement to such benefit, equal to the sum of the 12 present values (as determined by the Commissioner 13 of Social Security using reasonable assumptions) of 14 the applicable percentage (determined under sub- 15 paragraph (B)) of the amount of such monthly ben- 16 efit (as determined before the application of such in- 17 crease) for each month in the life expectancy period 18 (determined under subparagraph (C)). 19 ‘‘(B) The applicable percentage determined under 20 this subparagraph is the percentage equal to the product 21 of— 22 ‘‘(i) 1⁄6 of 1 percent, multiplied by 23 ‘‘(ii) the number (if any) of the increment 24 months for such individual. 25 VerDate Sep 11 2014 02:42 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3889.IH H3889 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3889 IH ‘‘(C) The life expectancy period determined under 1 this subparagraph is, with respect to an individual, the 2 period— 3 ‘‘(i) beginning with the month in which the in- 4 dividual becomes entitled to an old-age insurance 5 benefit; and 6 ‘‘(ii) ending with the month before the last 7 month of life expectancy (as determined by the Com- 8 missioner of Social Security using reasonable actu- 9 arial assumptions) for the cohort of individuals who 10 become eligible for an old-age insurance benefit in 11 the same month as the individual. 12 ‘‘(D) The Commissioner of Social Security shall cer- 13 tify to the Managing Trustee of the Federal Old-Age and 14 Survivors Insurance Trust Fund the amount of any lump 15 sum payment payable to an individual under subpara- 16 graph (A) and, upon receipt of such certification, the Man- 17 aging Trustee shall make payment of such lump sum pay- 18 ment to such individual from such Trust Fund. 19 ‘‘(E) An alternate monthly increase for an individual 20 determined under this subparagraph shall be equal to the 21 monthly increase for the individual that would be deter- 22 mined under paragraph (1) if such monthly increase were 23 determined by substituting ‘1⁄2’ for ‘2⁄3’ in paragraph 24 (6)(D). 25 VerDate Sep 11 2014 02:42 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3889.IH H3889 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3889 IH ‘‘(F)(i) For purposes of determining the amount of 1 any benefit payable under this title on the basis of the 2 wages and self-employment income of an individual who 3 makes an election under this paragraph, the amount of 4 any such benefit shall be determined as if such individual’s 5 old-age benefit had been increased under paragraph (1) 6 without regard to this paragraph. 7 ‘‘(ii) For purposes of applying any reduction under 8 subsection (k)(3)(A) to the monthly insurance benefit of 9 an individual who makes an election under this paragraph, 10 the amount of such individual’s old-age benefit shall be 11 determined as if such old-age benefit had been increased 12 under paragraph (1) without regard to this paragraph.’’. 13 Æ VerDate Sep 11 2014 02:42 Jun 30, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3889.IH H3889 kjohnson on DSK79L0C42PROD with BILLS